Construction Monthly Magazine | Atlanta 2023 Build Expo Show Edition

Recession Protection Strategies to
Increase & Retain Your Working Capital
Without an offensive posture
determined to save your company
money, economic insecurities,
supply chain disruptions,
and managing a challenging
workforce can influence
companies to be more reactive,
adjusting to the ever-changing
rules and guidelines. Now is the
time to be proactive, but most
business owners cannot invest
the hours to become a financial
expert and stay current with the
latest tax strategies.
Businesses need a partner
whose primary focus is to make
companies more profitable. This
can be accomplished through operational,
insurance and tax strategies by minimizing
your income tax so you can maximize your
working capital to strengthen your company.
We want to share 6 strategies you should
consider to increase profitability at your
construction company:
1. Conduct a Utility Audit
A utility audit company can get you refunded
for past overcharges while also saving on
future bills. They will look back three years on
your utility bills and determine if you have any
bills you should not be paying. On average,
80-95% of companies qualify for a refund.
They will also do an annual review for the next
three years to help you find any additional
savings.
2. Apply for the Employee Retention Credit
Employee Retention Credits (ERC) came
out the same time as Paycheck Protection
Program (PPP) loans as an incentive program
to help stimulate the economy during the
pandemic. Originally, you could choose
either a PPP loan or ERC. At the end of 2020,
Congress decided you could get both, as long
as you back out the money received from
your PPP loan employee forgiveness as well
as other requirements. There are two ways to
qualify for the ERC:
1. Drop in sales of 50% from 2019 to 2020
or a 20% decline by quarter for the first 3
quarters of 2019 compared to 2021.
12 CONSTRUCTIONMONTHLY.COM
RICHARD
RODGERS
Founder – Dannah
Investment Group LLC
2. A business disruption caused by a
governmental mandate. This second method
is the area that our tax attorney qualifies most
construction companies as eligible. If you have
been told that you don’t qualify
as a construction company, it is
worth a call to explain why you
might.
3. Rethink Health Insurance
The American Healthcare Act
has afforded the creation of
programs beneficial to both the
employer and the employee.
These unique health insurance
plans incorporate healthy
lifestyle strategies that can
make you as a business owner
approximately $500 per employee per year.
In addition, employees can save up to $1,800
per year by participating in the healthy
lifestyle campaign. We help connect you to
partners who manage all the details and allow
you to add this benefit without changing the
quality of care or even changing insurance
companies.
4. Eliminate Credit Card Charges
Credit card fees are changing dramatically.
Fictitious Texas Construction Company
We can help you reduce or eliminate
your credit card fees by using a merchant
processing platform that lowers your monthly
merchant credit card processing fee by up
to 15-20%. You can also receive a potential
rebate, putting money back in your pocket.
5. Be Proactive with Tax Planning
Tax planning is not planning how much tax
you have to pay; tax planning is planning on
how to minimize your tax liability by utilizing
tax strategies. We can help you reduce your
adjusted gross income through charitable
strategies and tax-deductible investments.
This is a more customized approach and is
worth a conversation.
6. Defer Your Capital Gains
If you are selling your company at any point, you
could be facing substantial capital gains. We
have strategies to defer capital gains, thereby
enabling you to earn investment income on
what you would otherwise pay in taxes. We
can also increase FDIC limits on cash balances
above $1 million.
To give you an idea on the cost savings if
you took advantage of these strategies, we
have included a sample Texas Construction
Company with potential savings.
50 Employees Monthly credit card sales: $100,000 Utility costs: $20,000
Texas Construction Company
Strategy 1: Utility Audit Savings $24,000
Strategy 2: Credit Card Savings $42,000
Strategy 3: ERC Savings $756,000
Strategy 4: Health Insurance Savings $25,000
Strategy 5: Tax Planning Savings $285,392
Aggregate Savings: $1,132,392
As you can see, there are substantial savings in each strategy that your company could capitalize
on. All of these strategies require no up-front cost to you, other than your time. By shifting to an
offensive posture, you could save your company hundreds of thousands of dollars.
DANNAH INVESTMENT GROUP, LLC
BOOTH 506
DANNAHINVESTMENTS.COM
RICHARD@DANNAHINVESTMENTS.COM
214-614-2663
Securities offered through Kingswood Capital Partners LLC, member FINRA SIPC. Advisory services offered through Kingswood Wealth Advisors LLC an SEC Registered Investment Advisor. Kingswood Capital Partners
and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting
advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.